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#### How Demand Curve Shows The Relationship Between Price And Quantity Demanded?

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The economists mainly uses the demand as the total amount of good as well as services that consumers will and needs to purchase in all price. The demand is mainly based on all needs as well as wants that the customer can differentiate and it is differentiated between the needs as well as want f that particular product. Demand in referred as the ability of paying and if the manufactures are unable to pay, then there is no effective demand in the business process.

Demand is a particular schedule that helps in showing different amounts of all consumers that wants to buy or are capable to buy at some specific price that includes some series of all the possible price that comes during the specific time period. Quantity demanded is the total amount of the service or the good that are stated by the individuals who wills to buy a particular product at particular price as well as that specific time. Demand is the only quantity that is demanded at all prices in particular time. A price change will result in change of the quantity that is demanded, not the demand. All the other factors that are included in demand except the price change will help to alter the demand. There are non-prime factors that includes the total number of buyers, the expectations, the total income as well as preference of product selection.

There is a law of demand which states that if the price of a particular good increases, the quantity demanded (Qd) of that particular product decreases and if there is a decrease in the price of the product, the Qd of that particular good increases. The price of a product and the quantity demanded of a products are inversely proportional.

### Law of Demand

1. There is substitution effect that states that if the price of a product or good increases, the product will become more expensive compared to the price of product B if the price of the product B remain constant. The consumers involved with that product will buy product B instead of buying product A that will cause product A consumption to decrease.

2. There is also an income effect that states that higher the price will help to lower the power consumption of the income and will decrease the demand the product.

3. There is a low of diminishing the marginal utility. This law states that if a customer buys more a particular product, there is an additional utility that will help to decrease the consumption more eventually. This will help to encourage the total consumption and the price of the product will fall.

### Demand Curve

Figure 1: Demand curve

The above shown diagram shows the demand curve which states the relationship between quantity that is demanded for a particular good as well as the price of the good. This curve is a downward curve. The demand curve mainly comes with each product that are sold in the market. The demand curve actually occurs relatively steep as well as flat and the curve might also be straight or might be curved. The demand curves mainly shares many fundamental similarity that slopes down from the left side to the right side. The demand curves includes the demand law. This states that is the price decreases the total quantity demand of that product or good decreases and if there is a price decrease, the total quantity demand also increases.

In economics, the term demand is different from the quantity demanded. The demand is the relationship between the princes and total quantities demanded at that price. The quantity demanded is stated as the quantity on demand schedule. The demand refers to the curve as well as the quantity demanded that are specific at some particular curve. With the supply, the total amount of the good as well as services that is given by the supplier that has one unit of good or service that is provided to the customers. The rise in the price of the product always results in rise in increase of the quantity supplied for a good or a particular service taken from the supplier. If there is a fall in the price of the product, there will be a decrease in the quantity supplied.

As per the economists, the supply is not considered same as the quantity applied. Supply is the relationship between quantities supplied for the prices as well as the range of prices. This particular relationship is known as the demand supply and the supply schedule. Quantity supplied is referred as the supply curve for a quantity that are applied on the supply schedule. The supply is mainly referred to the quantity as well as the curve that is supplied to that specific curve point.

When the buyer pay money for certain goods as well as service that is known as the price of that good or service. Total units that are purchased by the customers is known as the quantity demanded. The rise in the price of good as well as service decreases the total quantity demanded. The quantity demanded of a particular good is considered as the total amount of good that buyers wants to buy and are able to purchase. There are many determinants that plays important role in the demand and quantity demanded curve. The first determinant plays a vital role on the price of the good. From the above mentioned graph, it can be seen that if the price of the quantity demanded for the product or service rises, the price of the product falls. The price of the product is negatively related with the price. There is a relationship between the price and the quantity demanded and that is known as the demand of law. When there is a rise in good there is quantity demanded for the product falls. When there is decrease in price of the product, the quantity demanded of the product also falls as that is shown in the graph.

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